National Funding Review 2019

By: Heather Hanks Mar. 01, 2019

National Funding can help you get a small business loan quickly. They specialize in short-term loans and can lend you as much as $300,000 for all your major purchasing needs. The company can even refinance your debt from a different lender.

The downside is that they won’t work with certain business industries. These include sports clubs, legal services, art galleries, and more. They also don’t report your activity to the three major credit reporting agencies and interest rates can be high. Here is everything you need to know about National Funding and whether it’s right for your small business needs.

National Funding Review

on National Funding website

What is National Funding?

National Funding is a nationwide small business loan lender who states they are committed to their community. The company has been in business since 1999 and have helped plenty of businesses expand and upgrade. They started off as an equipment rental business. They also offered merchant cash advances. As the company began to grow, they started offering small business loans.

According to the website, the company’s product line has grown as their business has gotten bigger. They state that they are one of the country's biggest private lenders of small business loans. Customers come to them for their equipment financing and working capital needs. They pride themselves on being a trustful company that small business owners can turn to when they need financial help.

The company states that they are more than just an alternative lender. They are an ally for small business owners. The company was founded in California and went through many ups and downs while they were getting started. they claim that they have built a respectable environment from the ground up that includes stability and togetherness. The company States that they take pride in what they do and this is reflected in their relationship with customers.

Their goal is to provide small business loans that help expand local communities. They claim that they empower their customers and take every opportunity to help them grow. Their relationship with you is built on mutual respect, hard work, transparency, and ethics. They state that because they started from the ground up, they can help you do the same. They provide resources needed to meet any demands, including new products and services. They also offer equipment to help grow your business.

National Funding states that they will work hard and move quickly to meet your financial needs. They state that they can give you funding within 24 hours of being approved. There is no obligation. You will not need to put down collateral or a down payment when you apply. The company also claims that they have a high approval rating. This means that they will say yes when other lenders won't work with you due to bad credit.

Here are some of the key highlights of the services they offer:

No down payment or collateral required when applying

Small business loans that range from $5,000 to $500,000

Interest rates are between 1.17 - 1.36 factor rate

Easy application process that can be done within minutes

Equipment leasing option up to $150,000

You can least new or pre-owned equipment

Guaranteed lowest payment possible for equipment rental

Wide variety of payment options for leasing equipment

Loan terms range from 6 to 15 months

Automatic payments are available

A small business loan from National Funding can help you grow your business without hassles. This allows you to have financial flexibility for your day-to-day operations. You can use a small business loan to make sure your employees, bills, taxes, and vendors are paid on time. You can also use it to cover Capital expenses. This includes updating your equipment, adding on critical growth elements, and improving your facility.

A small business loan can also help protect your personal finances. Keep your personal and small-business finances separate by taking out a small business loan instead of a personal loan. A personal loan can affect your personal credit if you fail to make payments. But a small business loan will only affect your company’s line of credit. If something happens to your business, your personal credit and any personal collateral such as your home are protected.

It's a good idea to use a small business loan to keep cash on hand. You may need to cover unexpected growth needs or other responsibilities to maintain working capital. Growing your business and maintaining financial Independence may require you to take out a small business loan. You can cover overhead, buy inventory, and support marketing needs. Avoid sharing financial control with equity partners by taking out a small business loan.

National Funding encourages you to pay your loan back early. This is one of the standout features of the company. Paying your loan back early is beneficial because it saves you money on interest. Other lenders may hit you with a prepayment fee by paying your loan back early. This is because they want you to spend money on interest. The other good news is that National Funding provides its services to businesses in all 50 states.

National Funding will not report your financial activity to one of the three major credit reporting business bureaus. This means that if you have good financial behavior, it cannot be used to boost your credit score. On the other hand, making a late payment will not be reported. This means that your activity will neither drop your credit or boost your credit. If you planned on using this loan to help boost your credit, you may need to reconsider your options.

The downside is that National Funding does not work with every type of small business owner. They will not work with the following Industries:

  • Mining
  • Sports clubs
  • Oil
  • Coal
  • Auction houses
  • Gas
  • Airports
  • Car dealers
  • Art galleries
  • Legal services
  • Tour guides

How Does National Funding Work?

Even though they are a national lender, National Funding states that they treat your small business needs personally and quickly.

The company states that they approve 60% of all small business loans

Here are some examples of the loans National Funding provide:

  • Working Capital Loans
  • Unsecured loans
  • Corporate loans
  • Short term business loans
  • Business Capital loan
  • Bad credit loans
  • Bridge loan
  • Commercial business loan

It's a good idea to have all the paperwork needed handy when you fill out your application. This can help speed up your funding time. If National Funding needs to contact you for more information, then you may have to wait longer to receive your funds. To apply, you will need copies of your bank statements for the last three months. You will also need proof that you make at least $150,000 per year. National Funding also requires that you have been in business for one year.

Applying for a loan is easy:

The first thing you'll need to do is visit the website and fill out a few basic answers. You can also call their toll-free number to speak with the loan specialist.

After you fill out an application, you'll be connected to a lung specialist who can help you decide which loan is right for you.

Once you are approved, you should see your funds in your bank account within 24 hours.

National Funding also offers merchant cash advances. Your business will need to have strong debit card sales and credit. Along with its business loans, National Funding also prefers to work with restaurants or retail Services. Merchant cash advances tend to have a high borrowing cost of around 40% to 350% interest rates. They require a daily payment structure, which can cause problems with cash flow.

As with the company's small business loans, merchant cash advances need to be repaid daily. But they do not collect this money automatically from your bank account. Instead, they take a percentage of your sales until the money is paid back. This is the company's way of ensuring that you make payments.

National Funding determines your total payback number with fees by using a factor rate. To get this number, you multiply your cash advance by the factor rate. This will reflect your total repayment amount. For example, if you borrowed $20,000 with a factor rate of 1.3, then you'll need to repay $26,000. The company bases their factor rate on merchant cash advances that range from 1.18 to 1.34. Most merchant cash advances are paid back within six to nine months.

The payments for merchant cash advances are based on a fixed percentage of your sales. This means you'll pay less when your business is slow and more when your business is doing well. A personal guarantee is not required for a merchant cash advance with National Funding. This means that your credit score and personal assets are not affected if your business does not do well. To qualify, you'll need to have been in business for at least one year. You also need to show that you have been making credit card payments of at least $3,000 per month.

Renting equipment from National Funding is also easy. You can rent new or preowned equipment for your business. Most of National Funding’s equipment is used for construction industries. Approximately 25% of it is used for titled vehicles, including semi-trailers and trucks. Interest rates for equipment rental ranges from 8% and up. This is lower than the company’s business loans because the equipment is the collateral.

To lease equipment from National Funding, you’ll first need to find the equipment or vehicle you need from them. Then, contact the company and apply for credit. If you’re approved, you’ll pay the invoice and fax in your quote. Customers who have had a business running for at least six months or have a credit score of at least 620 will be considered. If you meet these qualifications, you can borrow up to $150,000 to lease or finance equipment. You’ll need to repay these loans every month for three to five years.

Pros and Cons of The National Funding

The biggest benefit to working with National Funding is that they offer a prepayment discount. This can save you money on interest. On the other hand, you may be subject to higher fees than other lenders.

Here are some pros and cons of using the service.

PROS of the National Funding

  • National Funding is trusted in the financial industry. They have serviced over 40,000 small businesses nationwide and loaned more than two billion dollars.
  • You'll know within 24 hours if you're approved. You should also expect to see funds within 24 hours.
  • Funding options range from $5,000 to $500,000
  • You'll get a personalized experience from a loan specialist to help you manage your account
  • There is no application fee
  • No collateral or down payments are required
  • The application process is easy and quick. It can be done from any online device.
  • Prepayment discount offered
  • The company offers merchant cash advances and equipment rental in addition to small business loans
  • Faster funding and better qualification terms than most banks
  • They provide service to all 50 states
  • The company is trusted and has been in business since 1999
  • You only need a personal credit of 525 to qualify
  • Automatic payments are available

CONS of the National Funding

  • They don't provide loan services for every type of small business.

  • You'll have to pay a 2% origination fee
  • You must have an annual income of $150,000 to qualify
  • They do not report your financial activity to the three major credit reporting business bureaus. This can either be a good or a bad thing depending on your financial activity. If you consistently make late payments, and your credit score will not be affected. But if you planned on using your loan to help boost your credit by making timely payments, you will need to look at other lenders.
  • High borrowing costs and daily repayments are often required.
  • The company does not provide an average interest rate on the website. This means you will need to contact them to see what your possibilities are. Some Research indicates that annual interest rates are approximately 26%.
  • Your company must have been in business for one year before becoming eligible to apply for a loan. If you're just starting out, it can be hard to get the funds you need if you have not been in business very long.
  • The company requires a personal guarantee, which puts your personal matters at risk.

According to the CEO, National Funding prefers to work with some Industries over others. These include restaurants, retail stores, auto repair shops, and medical businesses. They prefer not to work with high risk Industries such as transportation and construction. Although they do not require collateral at the time of your application, National Funding requires a personal guarantee. This means that you'll have to put your personal assets and credit at risk if you don't make payments.

National Funding vs. Other Alternative Lenders

National Funding is a good option for business owners who need short-term cash. If your profits do not exceed the total amount of the loan, then you will need to look elsewhere for a better lender. The perks of using National Funding is that they are convenient and quick when compared to banks and other lenders. They also have an easy application process and are quick to say yes when others say no. You can get a loan in as little as 48 hours. Most business owners see their funds in their account within 24 hours.

The downside to using National Funding is that their fees tend to be higher than traditional bank loans. Banks typically have an APR of 10% or less. They also have longer repayment terms. National Funding does not disclose their APR rates on their website. You will need to contact them directly to see what you qualify for after filling out an application.

They do not report your financial activity to the credit reporting business bureaus. This means that you can't use your loan to boost your credit score by paying on time. If you are taking out a loan with the intention of boosting your credit, then you may want to look at other lenders.

Repayment terms at National Funding are short. The average repayment term is 7 months but can be as high as 15 months. You can also expect to see an origination fee of 2%. They also have a daily repayment structure that is not suitable for everyone. If you have a problem making daily payments or worry about your cash flow, then you may wish to seek out a different lender.

Here are some things to keep in mind when considering to the National Funding as your small business loan provider:

They require you to have at least two open lines on your personal credit report

They require an average balance of $1,500 in your bank but prefer you to have $3,500

The company does not lend to borrowers who have had a history of bankruptcy in the past year

You are allowed a maximum of five non-sufficient funds within the past three bank statements

You will need to have been in business for at least one year

You need an annual income of $150,000 to be eligible for a loan

Although you do not need to put down collateral, National Funding requires you to put down a personal guarantee for your loan. This means that your personal credit or assets can be at risk if you fail to make payments. The good news is that National Funding offers a discount for prepayment. This means you can save an average of 7% of your total balance if you pay your balance off early. Other lenders do not offer discounts because they want you to pay money in interest.

You also need to know that the company will not file a lien for loans that are less than $250,000. This is unless you have shown signs of default in the past. If they file a lien for you, it will be a blanket UCC lien. The company can refinance your debt from a different lender. They do this by buying out your loan from your other lender. Keep in mind that this may cost you more than you expected. Other than an origination fee of 2%, National Funding does not charge additional fees.

National Funding is best suited for successful business owners who need a large sum of money quickly. The company is best suited for those with good credit who can make timely payments. If you do not meet these qualifications, it may be worthwhile to look at other options. It's hard to fully compare National Funding with under lenders without knowing an average interest rate. The benefit to working with them is their prepayment discount and quick funding time. They tend to work well with business owners in the restaurant or retail industry. The company tends to shy away from high-risk Industries.

Conclusion about National Funding

Disclaimer

CreditNervana promises to keep our information as accurate and up-to-date as possible. However, you should always consult a financial advisor for specific questions about personal or business finances and investment opportunities, especially if you are looking in your area. Working with a trained professional who is familiar with your case is a safe and guaranteed way to make the best investment decision possible. Please review our terms and conditions before making any decision based on the information we provide. Financial institutions are constantly changing. Because of this, it’s a good idea to cross check the information you read here with any company you are considering working with.

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